Turkish retailers ask for cut in value added tax to fuel consumption, employment
DHA photoA leading retail sector representative has requested a discount in value added taxes (VAT) for fruits, vegetables, red meat, legumes, bakery products and olive and olive oil products from 8 percent to 1 percent to boost the sector’s growth level, create more employment and fuel consumption.
“We aim to grow by 14 percent by the year-end. The sector, which aims to make a total of 70 billion Turkish Liras [$24 billion] in annual sales revenue in the coming eight years, needs some tax support. As is the case in the wholesale sector, we also want a reduction in VAT in fruits, vegetables, red meat, legumes, bakery products, olive and olive oil,” said the head of Turkey’s Retailers Federation (TPF), Mustafa Altunbilek, in a written statement on Aug. 28.
A VAT cut in the sector would also help fight the informal economy, he added.
There has been a rise in the prices of fruits, vegetables and olive oil as well as red and white meats due to seasonal reasons.
The federation has 377 members with more than 4,000 sale points in the local retail sector. The sector’s annual sales revenue is around $10 billion.